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Steel News June 13, 2019 12:30:17 PM

India Seeks Stricter Rules to Rein In Imports of Defective and Sub-Standard Steel

Paul Ploumis
ScrapMonster Author
Various industries have their own quality control guidelines for steel products to determine whether they are defective or sub-standard.
India Seeks Stricter Rules to Rein In Imports of Defective and Sub-Standard Steel

SEATTLE (Scrap Monster): The Indian government announced that it will take necessary steps to rein in imports of defective or sub-standard steel, as part of efforts to safeguard domestic manufacturers. This was announced during a high-level meeting of Steel and Commerce Ministries which took place Tuesday.

It was observed that local players favor imports of sub-standard and defective steel as they are cheaper. However, the use of these impacts the quality of goods manufactured. Various industries have their own quality control guidelines for steel products to determine whether they are defective or sub-standard. The government will take additional steps to contain these imports, the meeting noted.

Major steel makers including JSW Steel, SAIL and Tata Steel agreed to supply steel to engineering goods exporters at the same price in which they are exported to other countries. The engineering goods companies had complained that the steel manufacturers are charging them 15-20% more, thus making their products uncompetitive in the global market. Such supply will be limited to those bulk manufacturers who export finished goods after value addition, upon the condition that they won’t be sold in domestic market.

This move is expected to double engineering goods exports over the next five-year period, sources said. Incidentally, Indian engineering exports had recorded a jump of over 6% in 2018-’19 to touch $83.7 billion, upon comparison with the prior year.